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Wednesday May 12th, 2021
Bonds & Forex

Sri Lanka successfully rolls over US$693 SLDB tranche

ECONOMYNEXT – Sri Lanka has successfully rolled over 693 million dollars of maturing forex denominated Sri Lanka Development Bonds helped by post-auction subscription for 9 month bonds, data from the state debt office showed.

In tough market conditions, the debt office which is a unit of the central bank said a total of 694.52 million dollars of bonds were sold against a maturing tranche of 693.89 million dollars.

Banks and investors initially bid 652 million dollars for a 750 million dollar auction of SLDB.

The debt office kept books open till April 30 to sell more bonds at the weighted average rate.

But an initial sale of 152 million US dollars of 9-month bonds was raised to 193 million dollars after the auction taking the total over threshold.

All other bonds were rolled over for periods exceeding 15 months with 200 million dollars in bonds rolled over for three years.

The bonds were rolled over with the debt office willing to pay higher rates at a time with the domestic dollar market is struggling to find foreign exchange and rates are elevated.

State banks were seen borrowing dollars at high rates earlier.

This week buy/sell swaps were executed at rates which raised eyebrows of some market watchers. (Colombo/Apr30/2020)

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